Why must you invest in mining in the Philippines ?
Our company The Grant Group is able to implement a focused and comprehensive mining program aimed at identifying commercial targets and developing existing and future opportunities within the country. We offer excellent opportunities to secure advanced mining and mineral projects in a resource country possessing good infrastructure.
Opportunities in the Philippines :
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Why Invest in the Philippines ?
- Has the resources and reserves
- Has the strategic locations
- Human resources with proper experience and skills
- Conducive legal system and clear policy environment
First, you should invest in the Philippines because of its vast mineral resources. The Philippines is known for its rich diversity in both metallic and nonmetallic mineral resources, but most especially in gold, copper and nickel. Not too long ago, the Philippines ranked among the world's top producers of gold, copper and nickel.
The potential for the Philippine mining industry—often overlooked—is in fact beyond imagination. Out of the 30 million hectares of the Philippines , 9 million hectares or 30% of the entire country is identified to have high potential for mineral deposits. Yet only about 420,000 hectares or a mere 1.4% of the 30 million hectares are covered with existing mining rights. We have identified 24 major mining projects that will require $8.0 billion in investments for the next five to six years. They are primarily gold, copper and nickel projects.
The second reason to invest in mining in the Philippines is its strategic location and distinct geographical character. As may be emphasized by the map, the Philippines is so strategically located in the Southeast Asia that it can be developed into one of the region's major centers of trade and commerce. More importantly, the Philippines serve as the main gateway to your major mineral markets like China , Japan and Korea.
As an archipelago, the Philippines offer a natural geographical advantage, making any mining project proximate to a port as transshipment point. Thus, an additional incentive for efficiency and lessening operating costs. In fact, all mines in the Philippines are within 50-100 kilometers from a port, a big advantage against countries with thousands of kilometers separating their mines from their shipment point.
The third reason is our human resource. Alongside our abundant mining and natural resource, our people are our best national asset. An English-speaking people, we also have strong cultural and historical links with western and Oriental and African cultures.
The Filipino's have a long mining heritage, even predating the arrival of the Spaniards in the 26 th century. This contributed to the development of several established mining centers in the country and the enhancement of the mining competence of our people. Therefore, it is not surprising that our geologists, miners and mining professionals are in demand not only locally but also overseas.
We are confident that the mining companies that employ Filipinos will attest to their technical competence. Thus, we have Filipino diamond drillers in Australia and Mongolia , Filipino mining engineers opening up mines in Laos and Vietnam , and Filipino technicians and operators being employed from Angola to Mozambique and Namibia .
However, just like in any open society, the Philippine mining industry has its own share of critics and other discordant voices in society. However, we all unite under the same creed of responsible mining. Therefore, as we invite you to the Philippines , we also expect the same environmental and safety standards that you apply when you responsibly mine in your own countries.
And finally, we also invite you to invest in the Philippines because of its conducive legal systems and clear policy environment.
The Philippines has Anglo-Saxon legal system similar to many of yours. Our legal opts on contracts; property rights, obligations and judicial configurations are of striking resemblance, facilitating legal transactions.
Most importantly, the Philippines now have a clear national roadmap for mining, supported by the three branches of government. Specifically, our Congress passed the Philippine Mining Act in 1995. Our Supreme Court, in a historic decision, settled with finality the constitutionality of the Mining Act, more specifically on its provisions on the financial and technical assistance agreement (FTAA), which allows foreign equity investments of up to 100%. Our President, Gloria Macapagal Arroyo, has signed Executive Order No. 270, providing for a very clear national policy agenda on the development of the Philippine minerals industry.
Furthermore, our President has created a Cabinet-level Minerals Development Council (MDC) which includes the private sector, to ensure full government support. On the ground, our company has appointed “high-level action officers” whose task is to shepherd priority-mining projects. We have also simplified processing procedures and reduced documentary requirements for mining approvals.
Mineral Resources in the Philippines
Gold has historically been a leading product of the Philippine mining industry. The two best gold projects are under the National Resources Mining Development Corporation, a state-owned corporation.
The Diwalwal Gold Projects in Mindanao is now being explored and high-grade tonnage is being blocked out below the artesian mining areas. Nearby North Davao Mining Company is scheduled to be privatized within the next first half of the year. The copper mines have substantial gold by-products. The new gold projects now under exploration will bring the total gold production to over 70 tons of gold annually.
Crew Minerals has invested in Apex Mines ; a gold producer with plans to expand its presence in the Philippines . Meanwhile, Climax Mining has announced new and substantive funding from a major player in Brazil for their Dinkidi gold and copper project to enable it to start construction within the year.
The Philippines is the largest copper producer in Southeast Asia and is among the top ten producers in the world. Most of the copper is mined in the North Luzon Highlands and on Cebu Island , the site of Asia 's largest single copper mine. Two fifths of the nation's total production comes from this central Visayan Island . Gold and silver are abundant in northern Luzon, northern Mindanao, and on several of the Visayan Islands . Benguet Province on Luzon is the top producer. The Philippines is also among the world's leading exporters of chromite. Large deposits of the mineral are found in Zambales Province on Luzon . Small amounts of zinc, manganese, iron ore, and cobalt are produced when world prices justify it. Undeveloped deposits of iron and nickel are located in Surigao, northeastern Mindanao.
Copper metal production in the Philippines can increase to over 500 thousands tons annually by 2013 with the development of the major projects now in the pipeline. Of major significance are three world-class deposits .
3 World-Class Deposits
- Tampacan Project of Sagittarius Mines
This project is over a billion-ton copper gold deposit located in Mindanao and is considered one of the biggest undeveloped projects in the world. It is now in the feasibility stage. Xtrata – has an option to purchase 62% of the ownership of the project within the year. Currently, Xtrata is conducting its due diligence in the project.
- Anglo Philippines
This is a joint venture project with Philex Mines in the Boyongan copper – gold porphyry project also in Mindanao Island . It has over 200 million tons resources and is embarking in another 17,000 meters of in-fill drilling. An adjoining property has potentially a similar tonnage and grade as the Boyongan and can be integrated into a large single operation.
Searching for a joint venture partner to develop its Far Southeast Project, a deep-seated copper-gold porphyry deposit in Luzon . It is a 600-million ton ore body with a high-grade core of about 150 millions tons.
The country will be a major nickel producer once the nickel projects will be operational by 2011. It is projecting a total of 206 thousand tons of nickel metal, coming from the large lateritic deposits, which now can be economically mined and treated by the HPAL process. Sumitomo of Japan has successfully installed a 10,000-ton plant in western Philippines and will double capacity by 2007. Jinchuan Metals, the largest nickel producer in China, has signed a letter of intent and is conducting due diligence to evaluate an investment of $1 billion to reopen the Nonoc Mines and produce 40,000 tons per year nickel metal in mixed sulfides.
Platinum group metals have been detected in ophiolitic (ultramafic) rocks in Zambales, in porphyry copper in Cebu , and with gold in the Paracale gold district. Platinum has been recovered in small quantities together with alluvial gold some localities in the ophiolite belt of Samar Island and in Mindanao .
Mining of chromite commenced in 1934 in the south of Luzon, followed in 1938 in Coto, Zambales, Northern Luzon . The latter proved to be the largest known deposit of refractory chromite in the world.
Chromite was one of the ores whose production continued during the Japanese occupation. After the war is experienced strong but rather erratic growth, reaching a peak of 850,000 metric tons in 1955. In latter years production has declined to around 200,000 metric tons annually.
Historically, the bulk (85%) of the country's chromite has been derived from the refractory ores of Zambales, which now contributes around 55% of total production. Deposits of chemical grade chromite are found in eastern Samar, and of metallurgical grade in Dinagat Island , off Northeastern Mindanao.
Chromite is hosted by ophiolitic rocks which are widespread in the Philippines . Individual chromite bodies are of various sizes from small pods to several million metric tons. In some weathering and erosion of the host rocks have produced secondary (eluvial, colluvial, or alluvial) accumulations of chromite.
Given the geology of the Philippines , the potential for further discovery of chromite is very good.
The Philippines produces around 50 metric tons of silver per annum, entirely as a by-product of gold and copper mining. Like gold, silver is widespread in the country, although the ratio of gold to silver in various deposits exhibits a wide range.
We invite you to visit the Philippines . We will be organizing a mining mission to the Philippines for senior executives of African-based mining companies.
Contact us NOW, and we guarantee your participation and investment in the revitalized Philippine mining industry will be well worth it.